THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, February 19, 1995 TAG: 9502180349
SECTION: SUFFOLK SUN PAGE: 10 EDITION: FINAL
SOURCE: BY CAROLE O'KEEFE, CORRESPONDENT
DATELINE: SUFFOLK LENGTH: Medium: 65 lines
WHEN AN AREA accountant announced a workshop on benefits to businesses of locating or remaining in an enterprise zone, C. Alan Hines was interested.
Hines, a former Suffolk policeman, and, before that, a military man, wanted to know about state and city incentives available for his small business, Law Dogs.
Enter Michael Locher, an accountant with Goodman & Co., who has researched such benefits.
An enterprise zone is established to stimulate business and industrial growth, resulting in neighborhood, commercial and economic revitalization though regulatory flexibility and tax reductions. Virginia passed enterprise zone legislation in 1982.
Downtown Suffolk and some areas surrounding it were named a zone in 1990. But due to an economic downturn, businesses were not in position to quality for zone benefits.
The early 1990s have been a time of downsizing, not of starting new businesses, relocating or expanding.
To qualify for the incentives, a business must be in the zone, do at least half of its business there and have a certain number of employees who were considered low to moderate wage earners 12 months prior to hire.
Statewide figures as recent as December 1993 show 25 zones with 200 businesses that created 4,700 jobs and rang up $6 million in tax credits.
The same figures are not available for Suffolk.
However, Hines says if he is approved for zone status, his business will save thousands in local credits in the first year alone. ``I meet all the qualifications,'' Hines said.
Besides tax credit, businesses are benefited as sponsor banks offer low interest loans to those who qualify.
Hines' goal is to increase the size of his business, a move which requires more capital than he had left after paying taxes on equipment, sales and wages., for example.
``This allows me more income to operate by reducing taxes,'' he said.
Hines was a warrant officer with the Suffolk police for 5 1/2 years, ``hunting down fugitives.'' He left the department for medical reasons. Before that, he patrolled the demilitarized zone in Korea for four years.
He sold hot dogs while he was a policeman too. He still has the cart he used then. He also has a mobile hot dog truck that follows a regular schedule at the peanut and lumber companies and at Lowe's on Saturdays.
His store is located where the old High's Ice Cream store was, 808 W. Constance Road. Hines, 31, and about to marry again, has five employees.
Enterprise zone status helps everyone involved, Locher said. ``It rewards businesses for locating or staying in the zone. It rewards them for hiring additional people. People who hadn't been making much money become contributing members of the community,'' he said.
``Alan's is an ideal case. He could have located outside the zone, but he wanted to stay where he grew up and where he had business contacts. He has created jobs where there were none. This is a perfect example of the spirit of the law.'' ILLUSTRATION: Staff photo by MICHAEL KESTNER
C. Alan Hines, left, who owns Law Dogs on West Constance Road, is
getting help on applying for benefits in the enterprise zone from
accountant Michael L. Locher.
by CNB